In general, a virtual wallet refers to an application running on a computing device that allows a user of the computing device to perform online transactions. A computing device configured to execute a virtual wallet application may be any of a wide range of devices, including laptop or desktop computers, tablet computers, so-called “smart” phones, “smart” pads, “smart” watches, or other personal digital appliances equipped for wired or wireless communication. In some examples, the virtual wallet may be used to purchase goods or services via either a website or a point-of-sale device configured to receive online payments.
A virtual wallet includes one or more virtual financial assets, which may correspond to any type of digitized asset that has a monetary value. Commonly, a virtual wallet includes one or more virtual credit accounts, virtual banking accounts, virtual currency accounts, or other liquid virtual assets that can be used to purchase goods and services. In some examples, a virtual wallet may also include non-liquid virtual assets, such as virtual stock and bond certificates; virtual ownership titles for real estate, automobiles, and other property; and virtual event tickets or other virtual documents having a monetary value. In other examples, a virtual wallet may include virtual identification documents.
In the above examples, the virtual wallet includes sensitive information that needs to be kept secure. Like all technology, however, virtual wallets have security risks. For example, a virtual wallet may be compromised if the virtual wallet is accessed by an unauthorized user, or if the computing device that stores the virtual wallet is lost, stolen, destroyed, or accessed by an authorized user. Unlike a stolen credit card, if the virtual wallet is compromised, there may be no way for a user to recover the virtual financial assets included in the virtual wallet.